National Flood Insurance Program Reauthorization and Reform Act of 2025

Premium Increase Caps: The bill limits annual premium increases to no more than 9 percent for a five-year period, which can help protect policyholders from sudden, large spikes in costs (Sec. 102).

Targeted Financial Assistance: It establishes a means-tested program providing graduated discounts for insurance costs to eligible policyholders with household incomes not more than 140 percent of the area median income (Sec. 103).

Monthly Payment Options: Policyholders may have the option to pay their premiums through monthly installment plans rather than annually (Sec. 104).

Improved Mitigation Funding: The bill provides for flood mitigation assistance grants, a mitigation loan program, and revolving loan funds to help reduce flood risks (Sec. 203, 206, 207).

Expanded Coverage for Cooperatives: Owners of shares in cooperative buildings would be eligible for flood insurance on the same terms as condominium owners (Sec. 106).

Enhanced Mapping Accuracy: The bill promotes mapping modernization and the creation of a digital display environment to provide more specific, structure-specific flood risk information (Sec. 208, 208(f)).

Streamlined Appeals: It provides a process for individuals and local governments to appeal the denial of flood insurance rate map updates (Sec. 208(b)).

Easier Appeals Process: The creation of an Independent Office for Policyholder Appeals provides a fair, non-adversarial way for people to challenge denied claims (Section 404).

Protection Against Unfair Damage Denials: A new "rebuttable presumption" means that if a flood causes damage to a foundation or structure, the insurance company must prove it wasn't caused by the flood before denying the claim (Section 401).

Improved Access to Information: Policyholders will have a right to receive complete and unredacted copies of their claim files, including notes and photographs, within one week of a request (Section 406).

Expanded Coverage Options: The bill allows for an optional insurance rider to cover basements in certain pre-FIRM condominium buildings (Section 402).

Better Mold Protection: New rules prevent insurance companies from denying coverage for mold or moisture damage if the policyholder faced specific challenges, such as being denied access to the property due to safety concerns (Section s 403).

Fairer Insurance Rates During Renewals: If a policy lapses, homeowners can still renew at their previous rate if they do so within 90 days (Section 417).

Increased Transparency in Property Sales: Sellers and lessors must provide written disclosures regarding flood risks, prior damage, and insurance availability to potential buyers or renters (Section 416).

Faster Claim Processing: The bill sets a 60-day deadline for insurance companies to make an initial determination on a claim (Section 408).

Monthly Payment Fees: Policyholders who opt for the monthly installment plan may be charged an annual fee of not more than $15 (Sec. 104).

Strict Requirements for Mitigation Assistance: Those using certain mitigation assistance for acquisition or relocation projects may be prohibited from receiving any future Federal disaster assistance for that property (Sec. 202(a)(4)(B)(i)).

Mandatory Insurance for Assisted Structures: Property owners receiving assistance for certain mitigation projects must maintain flood insurance for the life of the structure (Sec. 202(a)(4)(B)(iii)(I)).

Increased Costs for Certain Transfers: If a property owner fails to notify a transferee about the requirement to maintain flood insurance for an assisted structure, they may be required to pay the Federal Government an amount equal to any disaster relief provided (Sec. 202(a)(4)(B)(iii)(II)(bb)).

Financial Penalties for Refusing Help: If a person refuses a "bona fide" offer of assistance for flood mitigation, their insurance premiums could increase by 25 percent every year until they accept the help (Section 305).

New Disclosure Burdens: Sellers and lessors are now required to provide specific, written flood hazard disclosures to purchasers or tenants (Section 416).

Requirement for Documentation: To use the new protections regarding foundation damage, policyholders are encouraged to keep and submit documentation like photos or video of the condition of their foundation (Section 401).